Summary
Meta Platforms, Inc. (META) reported its financial results for the third quarter of 2022, ending September 29, 2022. The company experienced a year-over-year revenue decline of 4% to $27.71 billion, largely impacted by a strengthening U.S. dollar and reduced advertising demand due to macroeconomic challenges. Despite the revenue dip, Meta's user base across its "Family of Apps" continued to grow, with Daily Active People (DAP) increasing by 4% and Monthly Active People (MAP) also up by 4% year-over-year. The Reality Labs segment, however, saw a significant 49% decrease in revenue, highlighting ongoing substantial investments in the metaverse. Costs and expenses increased by 19% year-over-year, driven primarily by a 45% surge in research and development spending, reflecting Meta's strategic investments in future technologies, particularly within Reality Labs. This increased spending, coupled with the revenue decline, led to a 46% decrease in operating income. The company also repurchased $21.02 billion of its Class A common stock during the first nine months of the year, demonstrating a commitment to returning capital to shareholders.
Financial Highlights
49 data points| Revenue | $27.71B |
| Cost of Revenue | $5.72B |
| Gross Profit | $22.00B |
| R&D Expenses | $9.17B |
| Operating Expenses | $22.05B |
| Operating Income | $5.66B |
| Net Income | $4.39B |
| EPS (Basic) | $1.64 |
| EPS (Diluted) | $1.64 |
| Shares Outstanding (Basic) | 2.68B |
| Shares Outstanding (Diluted) | 2.69B |
Key Highlights
- 1Total revenue decreased by 4% year-over-year to $27.71 billion, impacted by foreign exchange headwinds and reduced advertising demand.
- 2Family of Apps (FoA) revenue experienced a 4% decline, though user engagement remained strong with a 4% increase in both Daily Active People (DAP) and Monthly Active People (MAP).
- 3Reality Labs (RL) segment revenue dropped by 49% year-over-year, signaling continued substantial investment in metaverse initiatives with significant operating losses.
- 4Research and Development (R&D) expenses surged by 45% year-over-year, reflecting a strong focus on future technologies and product development.
- 5Operating income decreased by 46%, driven by lower revenue and increased operating expenses, particularly in R&D.
- 6The company repurchased $21.02 billion of its Class A common stock during the first nine months of 2022.
- 7Meta Platforms ended the quarter with $14.31 billion in cash and cash equivalents and $41.78 billion in cash, cash equivalents, and marketable securities.